Indian Oil Corporation Ltd, Larsen & Toubro Ltd and ReNew Power Pvt Ltd. have signed a binding term sheet for the formation of a joint venture (JV) to develop the emerging green hydrogen sector in India.
The three companies will have equal shares in the planned green hydrogen joint venture.
“The three-part company is a synergistic alliance that offers L&T’s strong credentials in the design, execution and delivery of EPC projects, Indian Oil’s established expertise in petroleum refining together with its presence across the energy spectrum and the expertise of ReNew and bringing together the development of utility-scale renewable energy solutions,” the companies said in a joint statement.
In addition, Indian Oil and L&T have signed a binding term sheet to form an equity joint venture to manufacture and sell electrolysers for green hydrogen production.
SN Subrahmanyan, CEO & MD, L&T, said: “India plans to rapidly advance its decarbonization efforts and green hydrogen production is key to this endeavor. Indian JV Oil-L&T-ReNew will focus on time-bound development of green hydrogen projects to provide industrial-scale green hydrogen.”
“We see this partnership as a significant step in India’s quest for alternative energy. To fill another gap in the green hydrogen manufacturing chain, Indian Oil-L&T JV will focus on the production and sale of electrolyzers,” he added.
Indian Oil Chairman Shrikant Madhav Vaidya said: “Indian Oil is forging this alliance to realize India’s green hydrogen aspirations, which aligns with the Prime Minister’s vision of making India a hub for green hydrogen production and exports .”
“Initially, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. In addition, other green hydrogen projects in India are also being evaluated. While the use of hydrogen in the mobility sector will take time, refineries will be the lynchpin around which India’s green hydrogen revolution will materialize in significant measure,” he said.
Sumant Sinha, Chairman and CEO of ReNew Power, said, “As a leader in smart energy solutions and with advanced capabilities across all renewable energy technologies, ReNew is well positioned to complement the capabilities of our partners,” he said.
“The timing for these proposed JVs is excellent as they will help support the Indian government’s recently announced green hydrogen policy to advance India Inc.’s decarbonization journey,” he added.
The proposed JVs aim to enable India to transition from a gray hydrogen economy to a greener economy that increasingly produces hydrogen through electrolysis using renewable energy.